Region leads in modelling customer expectations

Customer expectations in the Asia Pacific region, especially around digital interactions and experiences, are the highest in the world, says international professional services firm EY in its 2020 Insurance Outlook report.

In response, Asia Pacific insurers have committed to innovations across the business. While insurers in other regions envision the customer of the future and model their needs and expectations, the future is happening now in the Asia Pacific region.

However, while the industry fundamentals appear sound, regulatory and economic uncertainties, and country-specific issues are clouding the Asia-Pacific outlook and creating some challenges.

Mr Grant Peters, EY Asia Pacific insurance leader, said, "The Asia-Pacific region is a major contributor to future growth of the insurance industry. The region is still riding a strong growth spurt, driven by China, but also buoyed by positive performance in South Korea. However, mature markets present challenges with an ageing population and shifting consumer expectations. No other market is as diverse in terms of opportunity and maturity – which poses an exciting challenge for insurers in this region."

According to the report, insurers should leverage the advantage of a relatively young and growing middle class by embracing new technologies. This in turn, will reduce their cost base and modernise distribution by strengthening direct-to-consumer propositions and leveraging regulatory change to streamline operations.

Source: Asia Insurance Review